Japan output likely to remain weak Q4 - BOJ

TOKYO, Oct 9 (Reuters) - Japan's factory output is expected to remain weak in the October-December quarter due to a delay in a pickup in overseas growth, the Bank of Japan said on Tuesday, suggesting it remains mindful of the risk of a further slowdown in the export-reliant economy.

Private consumption is also expected to suffer a downturn with an end to government subsidies for low-emission cars that had supported domestic demand, the central bank said in its monthly economic report.

"Economic activity is flattening out," the BOJ said.

The bleak assessment underscores the dominant market view that the central bank may expand monetary stimulus later this month to keep the economy on a recovery track.

At its policy-setting meeting last week, the BOJ kept monetary policy on hold but left the door open for further stimulus by warning of risks to the outlook.

The BOJ releases its assessment of the overall economy on the day of its policy-setting meeting. It issues a more thorough assessment of each component of the economy in the monthly report, usually released the following market day.

(Reporting by Leika Kihara; Editing by Michael Watson)


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